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Natasha2012 [34]
3 years ago
6

With the current economy, gas prices are now skyrocketing! The price of gas used to be $3.70, and it is increasing at a rate of

5% a week. How long until a gallon of gas will cost $4.80?
Mathematics
1 answer:
zysi [14]3 years ago
4 0

Answer:

It will take 5.33 years for the price of gas to reach $4.8.-

Step-by-step explanation:

Giving the following information:

Present value= $3.7

Future value= $4.8

Growth rate= 5%

<u>To calculate the time required to reach  $4.8, we need to use the following formula:</u>

<u></u>

n= ln(FV/PV) / ln(1+g)

n= ln(4.8 / 3.7) / ln(1.05)

n= 5.33

It will take 5.33 years for the price of gas to reach $4.8.-

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